Army awards $120M for thermal weapon sights, with 3 bidders competing

Contract Overview

Contract Amount: $120,014,731 ($120.0M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2009-03-06

End Date: 2010-11-30

Contract Duration: 634 days

Daily Burn Rate: $189.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THERMAL WEAPON SIGHT

Place of Performance

Location: PALM BAY, BREVARD County, FLORIDA, 32905

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $120.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: THERMAL WEAPON SIGHT Key points: 1. Contract value appears reasonable given the scope of advanced optics. 2. Full and open competition suggests a healthy market for these systems. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of 634 days allows for phased delivery and testing. 5. Awarded to a single contractor, indicating a focus on specialized capabilities. 6. Geographic location of performance in Florida may indicate specific manufacturing or testing sites.

Value Assessment

Rating: good

The contract value of $120 million for thermal weapon sights is substantial, but without specific unit counts or detailed technical specifications, a precise value-for-money assessment is challenging. However, the fact that it was awarded under full and open competition suggests that the pricing was likely competitive. Comparing this to similar, albeit potentially different, procurements for advanced optics systems would be necessary for a more robust benchmark. The firm fixed-price nature of the contract is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Army sought proposals from all responsible sources. With three bidders participating, the competition level appears moderate. This suggests that while there is interest in the market, it may not be as broad as for more common or less specialized equipment. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Soldiers in the Army will benefit from enhanced situational awareness and target acquisition capabilities, especially in low-light or adverse weather conditions. The contract supports the delivery of advanced thermal weapon sights, crucial for modern military operations. Performance is located in Florida, potentially impacting the regional defense industrial base and workforce. This procurement directly supports the operational readiness and effectiveness of Army personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if only one contractor can meet highly specialized technical requirements.
Dependence on a single supplier for critical defense technology could pose supply chain risks.
Ensuring long-term sustainment and upgradeability of the fielded systems will require ongoing attention.

Positive Signals

Awarded under full and open competition, indicating a broad market approach.
Firm fixed-price contract type helps control costs and provides budget certainty.
Moderate number of bidders suggests a competitive landscape for this specialized technology.
Contract duration allows for structured delivery and integration of the sights.

Sector Analysis

The defense sector for electro-optical and infrared (EO/IR) systems is highly specialized and technologically advanced. Thermal weapon sights fall under this category, representing a critical capability for modern military forces. The market is characterized by a few key players with significant R&D investment. Government procurements like this are substantial drivers of innovation and revenue within this niche industry. Comparable spending benchmarks would involve looking at other contracts for similar advanced optics and targeting systems across different military branches.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. The prime contractor, DRS Network & Imaging Systems LLC, is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Future analysis could explore whether the prime contractor engages small businesses for components or support services related to this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Night Vision Systems
Targeting and Fire Control Systems
Advanced Electro-Optical Systems
Department of Defense Weapon Systems Procurement
Army Infantry Equipment Modernization

Risk Flags

Potential supply chain dependency on a single contractor.
Long-term sustainment and upgradeability require careful planning.
Technical specifications and performance metrics are not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. THERMAL WEAPON SIGHT

Who is the contractor on this award?

The obligated recipient is DRS NETWORK & IMAGING SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $120.0 million.

What is the period of performance?

Start: 2009-03-06. End: 2010-11-30.

What is the specific model or technical capability of the thermal weapon sights procured under this contract?

The provided data does not specify the exact model or detailed technical capabilities of the thermal weapon sights. The contract number (likely associated with a broader program) and the North American Industry Classification System (NAICS) code 333314 (Optical Instrument and Lens Manufacturing) indicate the general product category. To understand the specific capabilities, one would need to access the contract's statement of work (SOW) or technical specifications, which are typically not publicly disclosed in detail for security reasons. These sights likely offer advanced thermal imaging for target detection and identification in various operational environments.

How does the per-unit cost of these thermal weapon sights compare to similar systems procured by other military branches or allied nations?

A direct per-unit cost comparison is not possible with the provided data, as the total award amount ($120,001,473) and the number of units are not explicitly linked. The contract duration is 634 days, and the number of offers received was 3. To perform such a comparison, one would need to identify the exact quantity of sights procured under this award and then divide the total value by that quantity. Subsequently, this calculated per-unit cost would need to be benchmarked against publicly available data for similar thermal weapon sights acquired by other government entities, considering factors like technological sophistication, features, and bulk purchasing discounts. Without the unit quantity, any per-unit calculation would be speculative.

What is the track record of DRS Network & Imaging Systems LLC in delivering complex defense optics contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a significant track record in developing and manufacturing advanced defense electronics, including electro-optical and infrared (EO/IR) systems. They have been a key supplier of various sensor systems, targeting solutions, and communication equipment to the U.S. military and allied nations for many years. Their portfolio often includes thermal imaging devices, night vision equipment, and integrated systems for ground vehicles and aircraft. While this specific contract award is for a defined period, the company's broader history suggests experience in handling large-scale, technologically demanding defense procurements, often involving complex integration and stringent performance requirements.

What are the potential risks associated with relying on a single contractor for the supply of these critical thermal weapon sights?

Relying on a single contractor, even if selected through competition, introduces several potential risks. Firstly, there's a risk of supply chain disruption; if the contractor faces production issues, financial instability, or geopolitical challenges, the availability of these critical sights could be jeopardized. Secondly, a lack of ongoing competition could lead to complacency in innovation or potentially higher prices in future procurements or sustainment phases. Thirdly, the government might face challenges in obtaining competitive bids for upgrades, repairs, or follow-on orders if the original contractor holds proprietary knowledge or unique manufacturing capabilities. Managing these risks often involves strategies like maintaining strategic stockpiles, fostering competition for sustainment, and ensuring robust contract oversight.

How has federal spending on thermal weapon sights evolved over the past five years, and does this contract represent a significant shift?

Analyzing the evolution of federal spending on thermal weapon sights requires access to historical contract data across all relevant agencies and contract types. This specific contract, awarded in 2009 for a period ending in 2010, predates the last five years. To assess trends, one would need to query databases like FPDS or USAspending for similar procurements over the specified period. Factors influencing spending include evolving military doctrine, technological advancements (e.g., higher resolution, reduced size/weight/power), operational tempo, and budget allocations. Without a broader dataset, it's difficult to determine if this single $120 million award from over a decade ago represents a significant shift; however, the continued demand for such systems suggests their enduring importance in modern warfare.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 2330 COMMERCE PARK DR NE STE 2, PALM BAY, FL, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $120,014,731

Exercised Options: $120,014,731

Current Obligation: $120,014,731

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB07D0031

IDV Type: IDC

Timeline